History of Nestlé Malaysia

History of NESTLÉ

NESTLÉ (NESTLÉ Homepage) founded by Henri NESTLÉ in 1866, is a food and beverage industry with headquarter in Vevey, Switzerland. Today, NESTLÉ had more than 500 sub-companies in 80 countries. It has became the world's leading nutrition, health and wellness company with the slogan of "Good Food, Good Life". NESTLE's daily operation has been guided by several principle such as creates equal creation of value to stakeholders, promotes long-term performance and produces the best to people no matter where and what they need throughout their lives.

In order to achieve one of their objectives, NESTLÉ offers nutritionally balanced products at affordable price and tailors consumers' need. Not only that, NESTLÉ also supports government's efforts to encourage people to have healthier diets and active lifestyles. This effort is to overcome problems such as obesity, diabetes and cardiovascular diseases (NestleHomepage, n.d).

NESTLÉ in Malaysia

NESTLÉ Malaysia has 2 head offices, 10 branches of Administration offices and 9 factories nationwide (Jaafar, 2010). To costume Malaysia's culture and lifestyle, NESTLÉ has produced six HALAL product lines which are beverage, milk, prepared food, ice cream, cereals and chocolates. Each product line has various types of products to satisfy Malaysian's preference. Due to the changing of Malaysian's lifestyle, there are varieties products for each product lines. The following table shows each of the NESTLÉ product lines.

NESTLÉ Product

Beverage Cereals Milk Chocolates Ice Cream Instant Food

Milo Honey Star Nespray Kit Kat Drumstick Maggi

Nescafe Koko Crunch Neslac Smarties Trophy Buitoni

Canned Drink Cookie Crisp Milky Bar Mart Kool

UHT NESTLÉ Crunch

Table 1: The various type of NESTLÉ product lines

2.0 Drivers for Change

NESTLÉ, with 500 factories worldwide, exercise 50 different transaction systems in different countries (www.sap.com, 2001). According to Jan Ottmer, NESTLÉ Nordic's Chief Information Officer, claimed that NESTLÉ was not systematically work under one unit. Due to globalization, each country operated with its own type of information technology (IT) system. Harmon (2002) has further studied the problem of NESTLE. In his studies, each NESTLE's branch from different countries was paying 29 different prices for a particular vanilla in the mid 19th. However, each branch was purchased from the same vendor. Furthermore, each company had different product name, code number and different